Seeking Alpha

Joe Eqcome

 
View as an RSS Feed
View Joe Eqcome's Comments BY TICKER:
Latest  |  Highest rated
  • The CEF Industry's Managed Distribution Policies May Lead To The Exploitation Of Investors [View article]
    Stocks-Options,

    Not any of the "buy/write" funds are in the Premium categories. They are amount the discounts.

    Joe Eqcome
    Apr 6 08:23 PM | Likes Like |Link to Comment
  • The CEF Industry's Managed Distribution Policies May Lead To The Exploitation Of Investors [View article]
    About,

    The 18% dividend is all return of capital. This is not a strategy!

    CLM has a 100% return of capital in the first quarter. That is like you taking money out of your left hand pocket, giving away a portion of it in the form of a fee, and then returning the remainder to your right hand pocket and calling it a dividend.

    Your think that is a strategy?

    Joe Eqcome
    Apr 6 08:13 PM | 1 Like Like |Link to Comment
  • Why Invest In Aberdeen Chile Fund? Why Not Mexico Fund [View article]
    Returnthisserv,

    I see MXF as a long-term strategy against CH. MXF has $380 mil with a slight discount and yield of 10.6%. CH has a $84 mil, a premium of 21.4%, and a yield of 10.6%.

    MXF quarterly ex-dividend is on 4/7/14.

    However, MXF is a managed distribution program; but, the yields are from distribution of long-term capital gains. I sure that if long-term gains run out they be sure to use return-of-capital.

    Best,
    Joe Eqcome
    Apr 1 11:09 AM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Bond-007,

    I am unaware of the First Financial Fund (Pru) (OTCQB:FOFI) and less aware of the hypocrisy that He (Horesji) has perpetuated on the CEF industry.

    Judging from the ownership (39%) and the 24% discount, the cash for NAV (OTCQB:FOFI) may seem impractical.

    Yes, you should vote your shares to reject the deal.

    Whether or not you can “bid” for the shares to prevent Horesji to approve your deal is a matter for the shareholders to decide.

    Wishing you Luck!

    Best,
    Joe Eqcome
    Feb 7 03:43 PM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Also, in our correspondence with a Boulder Funds representative, insider shares will be allowed to vote in the case of the amendment.
    Feb 7 12:54 PM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Quick note: Horesji's share of FOFI is closer to 39% when you consider the trusts owned by Horesji that own FOFI shares.
    Feb 7 12:53 PM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Bond-007,
    Thank you for reading the article and your comments regarding this situation. You are correct regarding the relatively low expense ratio to the other funds involved in the merger. However, once all of the funds are merged, we will actually see an overall decrease in expenses. This will provide the merged fund with additional capital to use for dividends. Our full report at http://bit.ly/1g2zRIs has a detailed analysis of each of the 4 funds expense ratios and how it will be adjusted after the merger. In addition, the merging of the funds will consolidate various other expenses such as administration, auditing, printing, and other costs.

    In regards to the waiving the fair value clause, yes, you are correct. There is real economic value here for shareholders if they were allowed to demand fair value. However, with a current discount of 23%, there is no situation in which shareholders would be provided the opportunity to do this. It is possible that this clause was included in the original agreements because the FOFI was often trading at a premium or at a discount close to NAV where the fund could afford to provide this right to shareholders. Between 1994 and 1999 we can see FOFI’s prem/disc oscillating around 0%. In addition, it was trading at a premium between 2004 and 2007.

    In essence, it is best to look forward when considering this merger. In all likelihood, the amendment will pass and so will the merger. In that event, FOFI shareholders can look forward to a likely closing of the discount and a fund with great liquidity and asset base.

    Thanks again for your comments. We appreciate the discourse.

    Joe Eqcome
    Feb 7 12:25 PM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Fibonacci Sequence,

    I know there are “less rigged games at the casino”.

    However, I owned FOFI prior to the November merger announcement and therefore, I did not buy the stock on the plan that I was going to get cash for the NAV.

    Horseji is a 23% of FOFI (if not more) and has quite a bit of control regarding the amendment and it will therefore likely pass.

    The FOFI stock is at 23.0% discount. BTF, DNY and BIF are less than that discount: 21.6%, 20.7% and 20.4%, respectively.

    The opportunity of its merger would be:

    1. Create a “pop” in the FOFI stock if the merger goes through, or

    2. The advisers come back with a better offer or a separate buyback program, however unlikely.

    In either case, that would be fine by me.

    However, this will give Cash for NAV in anticipation of the merger cause to contemplate this arrangement.

    Best,
    Joe Eqcome
    Feb 6 05:44 PM | Likes Like |Link to Comment
  • Boulder Total Return Fund And First Opportunity Fund Will Be Most Profitable In Merger [View article]
    Fibonacci Sequence

    While I believe in fair play of both the ’33 and ’40 Acts, there is a practical manner that would supersede it. Horejsi own 23% (controlling interest) of FOFI--and maybe more.

    One of two things can happen out of this scenario:

    1) shareholders will waive their right to demand fair value and the funds will merge causing a boost to FOFI due to its steeper discount to the group; or

    2) shareholders will not waive their right to demand fair value and the merger won’t be voted on leaving shareholders in their current situation at a 23% discount to NAV.

    The Boards also determined that if the FOFI Amendment is not approved by FOFI stockholders, the Reorganizations, Advisory Agreements and Policy Changes will not be considered or voted upon by the respective stockholders. (Boulder, Nov. 2014 Press Release (BIF, BTF, DNY, FOFI Merger)

    Essentially, the dream of getting NAV for your FOFI shares is just that, a dream. It is better for FOFI shareholders to look for the realistic greener pastures of a narrower discount.

    According to InsiderCow.com, FOFI’s advisors (Stewart Horejsi, Brendon Fischer, CFA and Joel Looney) currently own 4,801,288 shares, which is about 16.7%. If for some reason they were to receive fair value for their shares, they would receive an additional $12.7 million over the current value. If they were to continue advising the fund, it would take about 4 years to make this amount in advisor fees.

    In essence, don’t expect the key players to reject the amendment.

    Joe Eqcome
    Feb 6 01:20 PM | 1 Like Like |Link to Comment
  • CEFs 2013 Over 2012: What A Difference! Merger Of Boulder Funds [View article]
    wkirk500,

    Great to see you again!

    I hope you have a successful portfolio in the coming New Year!

    Joe Eqcome
    Jan 3 01:50 PM | Likes Like |Link to Comment
  • CEFs 2013 Over 2012: What A Difference! Merger Of Boulder Funds [View article]
    Stevig,

    I believe that Boulder Growth & Income Fund (BIF) may be a good choice (or the other funds). The discount is 20% and the yield is 3.8%. The merger may that place in 2Q in 2014 and bulk up BIF which may pay a greater dividend.

    If the merger is approved by shareholders, the "advisers" will own 23.0% of the combined total assets, equating to $188 million (treasury stocks) of the combined total $817.3 million market capitalization of the reorganized funds.

    The question is: Will the "advisers" up the dividend.

    The stock owns 23% of "Berkshire Hathaway A". For a stock of 20%, this might seem like a steep discount.
    Jan 3 01:46 PM | Likes Like |Link to Comment
  • What's Wrong With Cornerstone Total Return Fund's Rights? [View article]
    Grinninbrit77

    Thank you!

    Joe Eqcome
    Nov 22 01:06 PM | Likes Like |Link to Comment
  • What's Wrong With Cornerstone Total Return Fund's Rights? [View article]
    Grinninbrit71,

    What is the return to short sellers (the rate of return) for lending out the stock?

    Joe Eqcome
    Nov 11 10:18 AM | Likes Like |Link to Comment
  • What's Wrong With Cornerstone Total Return Fund's Rights? [View article]
    Grinninbrit71,

    I haven't looked at "short lending" stops. Is there such an mechanism it that limits the "shorts"?

    Joe Eqcome
    Nov 8 10:34 AM | Likes Like |Link to Comment
  • Dividend Yields For S&P 500 Will Rise [View article]
    No Free Cake,

    This is a site that mostly people know--including Robert Shiller. The website was from CensusScope.

    The date was constructed on my website and it show that investment income was declining, with the exception of 2002 when the income component was increasing.

    My comments could have been simpler for less of an uncluttered mind.

    Best,
    Joe Eqcome
    Sep 30 05:02 PM | 1 Like Like |Link to Comment
COMMENTS STATS
604 Comments
451 Likes